Before You Hire, Should You Lease?

Before you hire that accountant or marketing manager, should you lease them instead? Increasingly, businesses are choosing from consultant-style agencies rather than hiring full-time workers. It can be a wise choice for small businesses in particular. Here's how to decide if Employee Leasing is right for you:



First, you must determine the hours of work you will actually need that employee. Too many companies, in the pride of being a company, do not realize that their employees are under challenged and would be more productive with a shortened schedule. Quite often, the employees feign busywork, aware of the expectation to appear busy. But many positions simply do not require much time. The only reason they are full-time positions is tradition has made them so. Ignore that expectation, and ask yourself, do I really need this position to be full-time?

If the answer is yes, look again. Imagine yourself in the position for which you are hiring. Would you be busy every day, for 8 hours? Or would your work come in seasonal loads, at times high, other times a mere trickle. Also ask what your emotional motive may be in hiring another person. Sometimes small business owners are lonely, and just want more people around. Could this be the case? If so, is there another way you can satisfy that social need?

Perhaps part of you balks at the idea of leasing an employee. You want to provide your employees with full-time, steady work and health insurance--the whole bit. If this is you, consider that employee leasing may be doing the employee a favor. They are getting experience at your company, without danger of losing their job. It is better to lease an employee than to hire them full-time and lay them off six months later when you realize you don't need them much, or can't afford them. Employee Leasing can be win-win for all parties.

A fear of some employers is releasing private company information. They feel concerned that the leased employee will leave with sensitive business information. However, you can easily control the information to which each employee has access. Just make the sensitive information off-limits, with computer passwords.

The benefits of employee leasing can be great. You are leasing professionals, not college kids from a temp agency. Professional leasing agencies do the background screening for you, the reference checks, and the interviews. So you save a lot of time at the beginning. Also, job training is minimal: The leased employee is already a professional in her field.

Which jobs are best for employee leasing? Accountants are a favorite. Financial management is quite similar from job to job, and easily interchangeable. But really, employee leasing can extend to positions that you may have never imagined. A short-term marketing manager could give your company's image a boost, or help prepare for a special event. Another idea is leasing a personal assistant for a busy period. A theater with a season of September-June may be best off leasing the majority of employees, rescaling to a minimal staff during summer months. You know your business best: What periods call for additional help? Can you do without that help at other times?

For cutting costs, in addition to employee leasing, consider how technology might help. Certified Payroll systems are becoming a popular opportunity to increase efficiency. Think creatively. You have many options for making your company more efficient.

About the Author

About the Author:Amy Brevard is a Freelance Writer working with Innuity. For more information about Certified Payroll or Employee Leasing visit HCS.

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